Insurance premium tax changes – TMF Group
TMF Group, a global provider of tax and accountancy services, has highlighted some insurance premium tax (IPT) and related tax changes around the world that are relevant to global insurance programmes.
United Kingdom: IPT remains unchanged in UK Budget
On 11 March, the UK Chancellor of the Exchequer delivered the 2020 UK Budget. Despite calls from certain sectors of the market to reduce the rate of IPT, and fears of an increase, the Chancellor left IPT untouched.
IPT was only addressed in the announcement of the soon-to-be-published summary of the responses from last summer’s call for evidence on the operation of IPT. In addition, it was noted that information will soon be provided on a forthcoming consultation on setting out the next stage in reforming the operation of IPT.
Spain: Spanish FBC reports due
Insurers writing fire and property multi-risk insurance in Spain are reminded that the annual declaration of insurance premiums and postcodes in Spain will need to be submitted via the Consorcio de Compensación de Seguros portal by 30 April. The report should detail the total premiums collected in 2019 in respect of fire and multi-risk policies in Spain. The report must provide details of the postcodes and type of risk. This information will then facilitate the collection of the tax from the insurer and the onward distribution to the various local fire brigades in Spain.
